§ 17373. Convention on Supplementary Compensation for Nuclear Damage contingent cost allocation
(a)
Findings and purpose
(1)
Findings
Congress finds that—
(B)
the Price-Anderson Act, in effect, provides operators of nuclear powerplants with insurance for damage arising out of a nuclear incident and funds the insurance primarily through the assessment of a retrospective premium from each operator after the occurrence of a nuclear incident;
(C)
the Convention on Supplementary Compensation for Nuclear Damage, done at Vienna on September 12, 1997, will establish a global system—
(D)
the Convention benefits United States nuclear suppliers that face potentially unlimited liability for nuclear incidents that are not covered by the Price-Anderson Act by replacing a potentially open-ended liability with a predictable liability regime that, in effect, provides nuclear suppliers with insurance for damage arising out of such an incident;
(E)
the Convention also benefits United States nuclear facility operators that may be publicly liable for a Price-Anderson incident by providing an additional early source of funds to compensate damage arising out of the Price-Anderson incident;
(F)
the combined operation of the Convention, the Price-Anderson Act, and this section will augment the quantity of assured funds available for victims in a wider variety of nuclear incidents while reducing the potential liability of United States suppliers without increasing potential costs to United States operators;
(G)
the cost of those benefits is the obligation of the United States to contribute to the supplementary compensation fund established by the Convention;
(H)
any such contribution should be funded in a manner that does not—
(2)
Purpose
The purpose of this section is to allocate the contingent costs associated with participation by the United States in the international nuclear liability compensation system established by the Convention on Supplementary Compensation for Nuclear Damage, done at Vienna on September 12, 1997—
(A)
with respect to a Price-Anderson incident, by using funds made available under section
2210 of this title to cover the contingent costs in a manner that neither increases the burdens nor decreases the benefits under section
2210 of this title; and
(B)
with respect to a covered incident outside the United States that is not a Price-Anderson incident, by allocating the contingent costs equitably, on the basis of risk, among the class of nuclear suppliers relieved by the Convention from the risk of potential liability resulting from any covered incident outside the United States.
(b)
Definitions
In this section:
(2)
Contingent cost
The term “contingent cost” means the cost to the United States in the event of a covered incident the amount of which is equal to the amount of funds the United States is obligated to make available under paragraph 1(b) of Article III of the Convention.
(3)
Convention
The term “Convention” means the Convention on Supplementary Compensation for Nuclear Damage, done at Vienna on September 12, 1997.
(4)
Covered incident
The term “covered incident” means a nuclear incident the occurrence of which results in a request for funds pursuant to Article VII of the Convention.
(5)
Covered installation
The term “covered installation” means a nuclear installation at which the occurrence of a nuclear incident could result in a request for funds under Article VII of the Convention.
(7)
Nuclear supplier
The term “nuclear supplier” means a covered person (or a successor in interest of a covered person) that—
(10)
United States
(A)
In general
The term “United States” has the meaning given the term in section
2014 of this title.
(c)
Use of Price-Anderson funds
(1)
In general
Funds made available under section
2210 of this title shall be used to cover the contingent cost resulting from any Price-Anderson incident.
(d)
Effect on amount of public liability
(1)
In general
Funds made available to the United States under Article VII of the Convention with respect to a Price-Anderson incident shall be used to satisfy public liability resulting from the Price-Anderson incident.
(2)
Amount
The amount of public liability allowable under section
2210 of this title relating to a Price-Anderson incident under paragraph (1) shall be increased by an amount equal to the difference between—
(e)
Retrospective risk pooling program
(1)
In general
Except as provided under paragraph (2), each nuclear supplier shall participate in a retrospective risk pooling program in accordance with this section to cover the contingent cost resulting from a covered incident outside the United States that is not a Price-Anderson incident.
(2)
Deferred payment
(A)
In general
The obligation of a nuclear supplier to participate in the retrospective risk pooling program shall be deferred until the United States is called on to provide funds pursuant to Article VII of the Convention with respect to a covered incident that is not a Price-Anderson incident.
(B)
Amount of deferred payment
The amount of a deferred payment of a nuclear supplier under subparagraph (A) shall be based on the risk-informed assessment formula determined under subparagraph (C).
(C)
Risk-informed assessment formula
(i)
In general
Not later than 3 years after December 19, 2007, and every 5 years thereafter, the Secretary shall, by regulation, determine the risk-informed assessment formula for the allocation among nuclear suppliers of the contingent cost resulting from a covered incident that is not a Price-Anderson incident, taking into account risk factors such as—
(I)
the nature and intended purpose of the goods and services supplied by each nuclear supplier to each covered installation outside the United States;
(II)
the quantity of the goods and services supplied by each nuclear supplier to each covered installation outside the United States;
(III)
the hazards associated with the supplied goods and services if the goods and services fail to achieve the intended purposes;
(IV)
the hazards associated with the covered installation outside the United States to which the goods and services are supplied;
(iii)
Application
In applying the formula, the Secretary shall not consider any covered installation or transportation for which funds would be available under section
2210 of this title.
(iv)
Report
Not later than 5 years after December 19, 2007, and every 5 years thereafter, the Secretary shall submit to the Committee on Environment and Public Works of the Senate and the Committee on Energy and Commerce of the House of Representatives, a report on whether there is a need for continuation or amendment of this section, taking into account the effects of the implementation of the Convention on the United States nuclear industry and suppliers.
(f)
Reporting
(1)
Collection of information
(A)
In general
The Secretary may collect information necessary for developing and implementing the formula for calculating the deferred payment of a nuclear supplier under subsection (e)(2).
(B)
Provision of information
Each nuclear supplier and other appropriate persons shall make available to the Secretary such information, reports, records, documents, and other data as the Secretary determines, by regulation, to be necessary or appropriate to develop and implement the formula under subsection (e)(2)(C).
(2)
Private insurance
The Secretary shall make available to nuclear suppliers, and insurers of nuclear suppliers, information to support the voluntary establishment and maintenance of private insurance against any risk for which nuclear suppliers may be required to pay deferred payments under this section.
(g)
Effect on liability
Nothing in any other law (including regulations) limits liability for a covered incident to an amount equal to less than the amount prescribed in paragraph 1(a) of Article IV of the Convention, unless the law—
(h)
Payments to and by the United States
(1)
Action by nuclear suppliers
(A)
Notification
In the case of a request for funds under Article VII of the Convention resulting from a covered incident that is not a Price-Anderson incident, the Secretary shall notify each nuclear supplier of the amount of the deferred payment required to be made by the nuclear supplier.
(2)
Use of funds
(A)
In general
Amounts paid into the Treasury under paragraph (1) shall be available to the Secretary of the Treasury, without further appropriation and without fiscal year limitation, for the purpose of making the contributions of public funds required to be made by the United States under the Convention.
(i)
Limitation on judicial review; cause of action
(1)
Limitation on judicial review
(A)
In general
In any civil action arising under the Convention over which Article XIII of the Convention grants jurisdiction to the courts of the United States, any appeal or review by writ of mandamus or otherwise with respect to a nuclear incident that is not a Price-Anderson incident shall be in accordance with chapter
83 of title
28, except that the appeal or review shall occur in the United States Court of Appeals for the District of Columbia Circuit.
(2)
Cause of action
(A)
In general
Subject to subparagraph (B), in any civil action arising under the Convention over which Article XIII of the Convention grants jurisdiction to the courts of the United States, in addition to any other cause of action that may exist, an individual or entity shall have a cause of action against the operator to recover for nuclear damage suffered by the individual or entity.
(j)
Right of recourse
This section does not provide to an operator of a covered installation any right of recourse under the Convention.
(k)
Protection of sensitive United States information
Nothing in the Convention or this section requires the disclosure of—
(l)
Regulations
(1)
In general
The Secretary or the Commission, as appropriate, may prescribe regulations to carry out section
2210 of this title and this section.
(2)
Requirement
Rules prescribed under this subsection shall ensure, to the maximum extent practicable, that—
(A)
the implementation of section
2210 of this title and this section is consistent and equitable; and
(B)
the financial and operational burden on a Commission licensee in complying with section
2210 of this title is not greater as a result of the enactment of this section.